The United States Remains Bolivia's 4th Largest Trading

UNCLAS LA PAZ 000057 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ETRD ECON EINT PREL BL SUBJECT: The United States Remains Bolivia's 4th Largest Trading Partner ¶1. SUMMARY. U.S.-Bolivian bilateral trade remains relatively strong, in spite of cancellation of Andean Trade Promotion and Drug Eradication Act (ATPDEA) preferences for Bolivia. Overall, preliminary 2009 numbers indicate that Bolivian exports to the United States decreased by 14.5% from 2008, compared to a drop of 23.3% overall, with all countries. Data collected for January to October of 2009 showed that Bolivian exports to the United States through the Generalized System of Preferences (GSP) program totaled $92.9 million, a 144% increase over the same period in 2008. This is due to the shift of trade from the ATPDEA to the GSP program. Still, many Bolivians -- especially those unable to take advantage of GSP -- remain keen to recover Bolivian participation in APTDEA. END SUMMARY. ¶2. Bolivia's trade with the United States declined in 2009, but the United States remained Bolivia's fourth largest export market. The most significant exports were precious stones ($97.9 million), tin ($86.9 million),silver ($59.3 million),and fuels ($47.5 million). Bolivia lost ATPDEA benefits on December 15, 2008. In 2008, U.S. imports under ATPDEA from Bolivia totaled $128,905,636. This represents approximately one-fifth of bilateral trade between the countries that year. ATPDEA sectors hardest hit by the loss of trade benefits were mineral fuels and oils (- 51%) and knitted apparel (-43%). Also impacted were leather goods, cotton apparel, and footwear. The national Exporters Association reported that in 2009 textile exports dropped by $19.5 million. Similarly, the sale of leather goods dropped by $12.3 million. ¶3. Many goods previously exported under ATPDEA appear to have transitioned to the GSP program. Through October 2009, Bolivian exports to the United States through the GSP program totaled $92.9 million, a 144% increase over the same period in 2008. This represents 24% of the $390.2 million dollars exported from Bolivia to the United States through October. Of the $390.2 million in Bolivian exports to the United States more than $193 million entered the United States without paying any tariff. Products that benefited from GSP included jewelry, wooden furniture, hearts of palm, onions, leather goods (except shoes),some textiles, and food. ¶4. In 2009 Bolivia imported $4.4 billion worth of goods from around the world. The United States supplied 13% of this total. Top Bolivian imported products were machinery and mechanical appliances ($179.5 million),vehicles ($109.1 million),and mineral fuels and oils ($9.0 million). In these markets, the U.S. supplies 26.8%, 20.1%, and 1.9% respectively. Other top Bolivia imports were steel ($269 million),of which the U.S. supplied less than one percent; electrical machinery, equipment, and parts ($259 million), of which the United States supplied 16%; and plastics and plastic products ($211 million),of which the United States supplied only 5%. ¶5. Comment: Throughout 2009, many Bolivian exports effectively transitioned from the ATPDEA to the GSP program. Still, there continues to be strong interest in the business community in expanding exports to the United States under GSP and advancing discussions of recovering preferences for the U.S. market for textiles and other products not covered under GSP. Indeed, numerous contacts throughout country indicate that this is the number one issue for business interests throughout Bolivia. There also appear to be significant opportunities for the United States to expand its exports to Bolivia in specific sectors such as machinery, vehicles, and plastic products. Creamer